Bronzit Company estimated the following at the beginning of the year: Assembly Department Testing Department Total Overhead $700,000 $100,000 $800,000 Direct Labor Hours 150,500 40,500 191,000 Machine Hours 37,000 72,000 109,000 Bronzit uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for the month of May is as follows: Assembly Department Testing Department Total Overhead $50,000 $11,000 $61,000 Direct Labor Hours 20,000 2,500 22,500 Machine Hours 3,500 14,000 17,500 Bronzit decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively? (Note: Round to two decimal places.) a. Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour b. Assembly: $4.65 per direct labor hour; Testing: $1.39 per machine hour c. Assembly: $2.23 per direct labor hour; Testing: $6.15 per direct labor hour d. Assembly: $5.12 per machine hour; Testing: $7.22 per machine hour e. None of these
Bronzit Company estimated the following at the beginning of the year: Assembly Department Testing Department Total Overhead $700,000 $100,000 $800,000 Direct Labor Hours 150,500 40,500 191,000 Machine Hours 37,000 72,000 109,000 Bronzit uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for the month of May is as follows: Assembly Department Testing Department Total Overhead $50,000 $11,000 $61,000 Direct Labor Hours 20,000 2,500 22,500 Machine Hours 3,500 14,000 17,500 Bronzit decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively? (Note: Round to two decimal places.) a. Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour b. Assembly: $4.65 per direct labor hour; Testing: $1.39 per machine hour c. Assembly: $2.23 per direct labor hour; Testing: $6.15 per direct labor hour d. Assembly: $5.12 per machine hour; Testing: $7.22 per machine hour e. None of these
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 10E: Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...
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Question
Bronzit Company estimated the following at the beginning of the year:
|
|
Assembly Department |
Testing Department |
Total |
|
|
$700,000 |
$100,000 |
$800,000 |
|
Direct Labor Hours |
150,500 |
40,500 |
191,000 |
|
Machine Hours |
37,000 |
72,000 |
109,000 |
Bronzit uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.
Actual data for the month of May is as follows:
|
|
Assembly Department |
Testing Department |
Total |
|
Overhead |
$50,000 |
$11,000 |
$61,000 |
|
Direct Labor Hours |
20,000 |
2,500 |
22,500 |
|
Machine Hours |
3,500 |
14,000 |
17,500 |
Bronzit decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively? (Note: Round to two decimal places.)
| a. |
Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour
|
|
| b. |
Assembly: $4.65 per direct labor hour; Testing: $1.39 per machine hour
|
|
| c. |
Assembly: $2.23 per direct labor hour; Testing: $6.15 per direct labor hour
|
|
| d. |
Assembly: $5.12 per machine hour; Testing: $7.22 per machine hour
|
|
| e. |
None of these
|
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